transport demand

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The efficient movement of goods plays an important role in the economic growth of a country. However the carrier may find that the demand for transport are not constant throughout the year. The increase or decrease in the number of demand may be due to ;


a) seasonality


b) peak and off-peak


c) industrial actions.


Custom Essays on transport demand

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1) Seasonality


The demand for transporting livestock are at its peak during the festive seasons such as during Hari Raya Aidil Fitri and the Chinese New Year. As the livestock such as chickens are very perishable, it is very important to transport them to the market as soon as possible. During this time of the year, the carriers will face problems that had to be solve urgently in order to deliver the chicken on time. Among the problems faced are;


1.1 Shortage of vehicles during the festive seasons for all modes of transport due to the increase in demand for vehicles to transport goods and people. These will create traffic jams in all roads and highways which may delay deliveries.


1. High rate of accidents of the vehicles used to transport the chicken on a long journey to major town or city around the country. The increase in the number of trips to meet the increase in demand and the process of loading and unloading of the chickens by the drivers, will make the drivers tired and are prone to accidents. Accidents may also happen with minimum maintenance been done during the period to meet the demand.


1. The carrier may face the problem of shortage of manpower due to the coming festive seasons.


The failure of the carrier to meet its increase in demand during the festive seasons will definitely affects its business in the long run although during the normal period (off-peak) the carrier may afford to give quality service. In order to overcome the above problems, the carrier should take proper measures to overcome the problems such as;


a) The carrier should engage rd party (with or without drivers) to transport their goods if they could not handle such a big volume of cargoes. Through experience the carrier should have identified the problem earlier and make efforts to engage extra vehicle from other carrier.


b) The carriers can also use old or sometime obsolete vehicles where during off-peak period are kept and maintained for substitute of break down vehicles.


c) In order to confront the problems of manpower shortage, the carrier should have hired staff with a mixture of race or religion so that its operation will not be badly affected certain race or religion festive seasons. The carrier should also have to hire temporary staff which will ease the problem in shortage of manpower due to the increase in demand and staff on vacations during the seasons.


d) Preventive maintenance should be regularly be done to minimise break-down during operations. Through checks on the vehicles especially which will involve in long journeys are very essential.


e) Increase the volume of cargoes per trip to maximise the space available in the vehicles (for this instance increase the number of chicken cages per trip). The carrier should plan to start their journey during off-peak hours i.e. during night time to avoid traffic jams.


. Peak-Off Peak


In every modes of transport operation, carriers will meet with a period where the demand of their service are sorted greater than any other period. For instant in the port operation such as Kuantan Port, the container operations are given “tight windows” to clear all containers due to lack of wharf and tight schedule of the container vessel. During these peak period the carrier will face problem such as;


.1 Delay in operations due to lack of vehicles and staff to transport the cargoes as during the same time the port still handles other type of cargoes.


. Delay due to break-down of machinery and vehicle such as the container cranes especially to small ports where they have limited number of cranes.


. Delay in operation due to slow approvement by the government agencies such as customs clearance procedures.


.4 Vessel missing their windows due to delay in operations for vessel operating before their windows. These may affect the customers of the vessel witch might need the cargo urgently such as in the industrial sectors which adopt the “JIT” delivery in their operations.


To overcome such problems carrier should take proper measures to safe guard their interest as well as their customers that users their service such as;


a) Do maintenance as regularly as possible to minimise the risk of break-down during operations.


b) Make arrangement with the related government authorities to speed up their clearance procedures which have been done in Kuantan Port where the customs give “Advance Clearance” in order to speed up the loading and unloading process of containers.


c) The Port Authorities will have to provide extra vehicles or cranes to speed up operation if any vessels are found to be behind scheduled in the loading and unloading process at the port.


. Industrial Actions


The demand for transport during Industrial Actions such as strikes are very high especially in transport perishable goods or valuable goods as the workers of the carrier refuse to transport the company’s goods. Industrial actions may create problems to the carrier, customers or even the country as a whole such as;


.1 Goods such as industrial components cannot be delivered on time


to the customer and will affects their productions which may lead to small companies ran out of business and finally increase the unemployment rate.


. Goods had to be stored in the carrier warehouse until the industrial actions are over where by than perishable goods might be destroyed. The carrier will incur extra cost to safe guard the goods especially the valuable goods.


. As a result of industrial action cost will be increase by improve in pay and conditions such as shorter working weeks which will affect the carrier’s competitiveness in the market.


To overcome problems in meeting demands during industrial actions, carriers should take preventive measures before it happens such as;


a) Hire more than one (1) rd party carrier to transport goods if the carrier had a mixture of own account and rd party transport to minimise the risk of one of the party goes on strikes.


b) Hire rd party carrier to transport goods during strikes to meets customers deadlines.


c) Make agreements which minimise the risk of industrial actions.


Conclusion


Carriers are subject to barriers and restrictions either in operational, geographical or legal in delivering goods to their customers. In order to increase or maintain their profitability and market share, carriers must satisfies their customers demand in meeting deadlines without losses or damages through proper planning.





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